Managing contracted services in a large corporate environment

Contracting service functions is increasingly considered in today's business environment. Contracted services have the potential to decrease costs and increase flexibility. However, contracting brings management challenges different from using company employees to perform those services. In order to achieve company objectives, contracted services must be managed not just purchased and "hope for the best". The paper describes service contracting challenges, management responses and references real life examples from contracting software development, computer installation and computer maintenance.